January 23, 2001 From Wire Reports

Norfolk Southern to Cut as many as 2,000 Jobs in Restructuring

Norfolk Southern Corp., the fourth-largest U.S. railroad company, said it will eliminate up to 6% of its work force — as many as 2,000 employees — reduce its track network and slash its quarterly dividend by 70% as it continues to struggle to incorporate portions of Conrail Inc.

Management and union jobs will be cut, according to Susan Terpay, an NS spokeswoman. The cuts are in addition to the elimination of several hundred maintenance workers last year and early retirements offered to 870 managers. The dividend will be cut to 6 cents a share from 20 cents on March 10, and the company will shed as many as 4,000 miles of track in the next two years.

NS is struggling with congestion that began when it started running part of Conrail last year. The company said last month it would fire or layoff 1,300 workers and that fourth-quarter profit fell below analyst forecasts.

The track reductions, through sale or abandonment, may cut the company's 21,800-mile system by 18%. The Norfolk, Va.-based company also plans to dispose of 12,000 freight cards and close or consolidate 10 facilities such as railyards or repair shops.

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